Home Business Crypto startups attract record $90 billion

Crypto startups attract record $90 billion

Crypto startups attract record $90 billion

When you think of the terms cryptocurrency and blockchain, you probably quickly think of abstract technologies that are completely independent of the rest of the financial world. But that’s actually not entirely true; The sector consists of a large number of companies that keep these networks alive. Venture capitalists see this as a great opportunity. According to research, they have already provided more than $90 billion in funding to the sector.

Crypto venture capitalists are setting new milestones

The block research closely tracks how much money crypto startups receive from venture capital funds. A research report states that this amount is already more than $90 billion as of 2017.

Last February, companies closed more than 50 deals, bringing the total to over $90 billion. “Although funding amounts have not increased significantly, there are positive signals,” said John Dantoni, director of The Block Research.

The analytics firm has divided funding into the categories of Web 3.0, crypto infrastructure, decentralized finance (DeFi), non-fungible tokens (NFTs) and blockchain gaming, financial crypto services, crypto brokers, crypto analytics and “enterprises”. In particular, DeFi, infrastructure, Web 3.0, NFTs and gaming have been popular targets for venture capital.

Due to fewer transactions, less money is flowing into cryptocurrencies

Companies in the pre-seed and seed phase received the majority of the money. Mobile payments platform Oobit was the biggest deal so far this year, thanks to investments totaling $25 million, including from Tether and Solana co-founder Anatoly Yakovenko. The remaining deals were each worth less than $10 million.

In addition, the average investment amount has remained approximately the same in recent months, but the total amount has decreased slightly compared to the 2021 and 2022 values. This is in line with the news from the end of last year – in 2023 there was 68% less money invested, the sector will stop in 2022. That was actually more in 2022 than in 2021, even though the market experienced a deep bear market that year.

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